Uruguay Buying Process
1 . WHO CAN PURCHASE PROPERTY IN
* Uruguayan nationals
* Non-Uruguayans
- With Uruguayan citizenship (dual citizenship)
- With Uruguayan residency
- Without Uruguayan residency
2. HOW CAN PROPERTY BE PURCHASED?
* By an individual
* By a corporation/company (local or foreign)
* By a person through a fully owned corporate vehicle (local or foreign)
- local (SA)
- foreign (Delaware LLC, Panama Co., BVI co, etc.)
3. WHAT CAN A FOREIGN INVESTOR PURCHASE?
* Beachfront properties
* Any extension of rural property (farm, ranch)
* Apartments, houses
THERE ARE NO RESTRICTIONS OR DIFFERENTIAL TREATMENT TO FOREIGN INVESTORS ACQUIRING REAL ESTATE IN URUGUAY
* Title / Deed + Plan (map)
* Entry in Public Registry
* Rural land: “CONEAT” system of soil type and productivity
* Professional title (University degree)
* 4-5 year degree
* Registered with Supreme Court of Justice
* Open-ended system
7. THE REGISTRY SYSTEM
* Public Registry System, information verified by certificates it issues
* All titles / deeds registered
* Real Estate Registry: divided by regions (19)
* Persons (owners), liens: centralized registry in
8. THE NOTARY PUBLIC’S ROLE
* Buyer appoints / chooses Notary
* Notary will protect the interests of the buyer in the purchase
* Notary verifies good standing of the title
* Notary conducts analysis of the title and studies the property’s ownership history 30 years back (Requests certificates from Registry to do so)
* Drafts Purchase Document & instruments the purchase
* Registers the purchase with the Registry
* (Custodian of the Title / Deed)
9. THE PURCHASE PROCESS: STEPS
1) The buyer chooses a property, negotiates the price and conditions.
2) The buyer’s Notary Public contacts the seller to analyze the property’s titles (and from the titles, the Notary Public determines what certificates are needed from the Registry)
3) A first document is drawn up: “Boleto de reserva”
The “Boleto de reserva”:
- Secures the transaction (but not registered)
- Establishes a penalty if breached
- Establishes the conditions of the acquisition: in one payment, or in
installments, etc
- Purchase is secured with deposit with Notary Public (10%+)
- Allows a 30-45 day window to do title study
4) After the “Boleto de reserva”, there are usually two alternatives:
a) One-time payment purchase (“Compraventa”)
b) Payment in two or more installments (“Compromiso de Compraventa”)
An alternative is to purchase with a mortgage-secured bank loan:
- Mortgage is registered along with deed / title
- When loan is paid, mortgage is cancelled
- Mortgage cancellation is registered
10. PURCHASE TAXES AND EXPENSES
- Property Transfer Tax: 2% for each seller and buyer (not based on the transfer price but on fiscal value of the property – lower)
- Notarial stamp duties to register deed: 18.5% of 3% of the transfer price
- Notarial certificates: USD 100 – 300
- Notarial fee
- Broker’s fee
11. TIPS
- Sign a Power of Attorney to someone in
- Decide ownership structure according to purpose of acquisition
- Bank arrangements for closing
